Kevin Bruner, Co-Founder and former CEO of Telltale Games, is suing the company seeking recovery for financial damages.
According to the Marin Independent Journal, Bruner, who stepped down as CEO from the company last year, is claiming that Telltale Games did not provide him informational support as he prepared to sell his holdings in common and preferred stocks even though they were contractually obligated to do so.
He claims that just as he had hired an investment banker and was ready to sell his holdings, the company ceased all communication with him, and he was forced off of the board of directors. The lawsuit states, “The net effect of Bruner’s alleged removal from the board of directors was that Bruner was deprived of relevant insight into the management and financial state of Telltale and the value of its shares.”
The lawsuit also claims that after Lionsgate invested in the company in 2015, some of Telltale’s board members were beginning to force Bruner out in favor of an outside CEO as they had begun to campaign for changes in the company’s business model. Bruner was fired two years later and “alleges the shareholder bloc that forced him out did not hold enough stock to cast legitimate votes.”
Telltale Games has refuted these claims by stating that Bruner’s suit is “an apparent means of extracting revenge on a company already under financial strain.” Judge Roy Chernus rejected their attempt to defeat the lawsuit outright by ruling that certain matters need to be further examined. A case management conference has been scheduled for July 17th.
Last September, Noah Hawley, formerly of Zynga and Red Robot Labs, took over as CEO of Telltale Games. The company announced in November that they would be laying off ninety employees.
Telltale Games confirmed at E3 last week that they were working on a new episodic game based on the Netflix Series Stranger Things.